Chipotle Mexican Grill Inc (CMG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,871,650 | 8,634,650 | 7,547,060 | 5,984,630 | 5,586,370 |
| Receivables | US$ in thousands | 168,495 | 154,621 | 193,663 | 387,283 | 108,250 |
| Receivables turnover | 58.59 | 55.84 | 38.97 | 15.45 | 51.61 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,871,650K ÷ $168,495K
= 58.59
The receivables turnover ratio for Chipotle Mexican Grill has shown a fluctuating trend over the past five years. In 2023, the ratio increased to 58.59, indicating that the company collected its accounts receivable approximately 58.59 times during the year. This represents a significant improvement from the previous year, where the ratio was 55.84.
The high receivables turnover ratio in 2023 suggests that Chipotle has been efficient in collecting payments from its customers, potentially indicating effective credit policies or prompt customer payments. The company's ability to quickly convert its receivables into cash is a positive indicator of its liquidity and financial health.
Comparing the 2023 ratio to prior years, there was a notable increase from 2021 when the ratio stood at 38.97 and a significant improvement from 2020 when the ratio was 15.45. However, it is slightly lower compared to the receivables turnover ratio of 51.61 in 2019.
Overall, the upward trend in the receivables turnover ratio for Chipotle Mexican Grill in recent years reflects improved efficiency in managing its accounts receivable and collecting payments, which is a positive signal for the company's financial performance.
Peer comparison
Dec 31, 2023